Sales tax rules

This comes from the Texas legislative council web page:

The sales and use tax (referred to herein as “sales tax”) imposed on most taxable goods and
services consists of a state sales and use tax and a local sales and use tax. The state sales tax rate is
6.25 percent of the sales price of taxable goods and services, and this rate is uniformly applied to
taxable retail transactions throughout the state. Local jurisdictions, including cities, counties, and
some special districts, may also impose a local sales tax after voter approval, but the sum of all local
sales taxes may not exceed two percent anywhere in the state. The maximum sales tax paid on a
taxable item anywhere in Texas is 8.25 percent.

The imposition of a local sales tax must be approved by the voters residing in the jurisdiction in
which the sales tax is to be imposed. Local sales tax revenues can be used for a variety of purposes,
including general fund purposes, property tax relief, health care for the indigent, crime control,
economic development, support of public libraries, emergency services, street maintenance, and
support of public transit. Because of the variety in local sales tax options, not all Texans pay an 8.25
percent sales tax. Some might pay only a 6.75 percent rate; others might pay a 7.75 or 8.0 percent
sales tax rate, depending on where they purchase a taxable item. This variation reflects the different
kinds of services and levels of services approved by the voters to be funded by local sales taxes.
Cities may levy a local sales tax of up to two percent; counties, up to two percent; transit
authorities, up to one percent; and special districts, up to two percent. State law governs the order in
which these taxes take effect, so as not to exceed the two percent cap on the sum of all local sales
taxes at any location in the state.

In our case 1.5% goes to the city general fund and .5% goes to Sun Metro.

We deserve better

Brutus

4 Responses to Sales tax rules

  1. The Oracle says:

    They need to get rid of the FEDERAL Law, whereby giving the Texas Sales Tax paid, while shopping here, BACK to the ones who “Claim” they took the items purchased to Mexico. REFUNDED SALES TAX.
    Even though, while the foreigners are here. . . they use the parks, the mass transit, emergency services, hospital, wear out the roads, consume the water, and then . . . they want the Sales Taxes BACK, as per FEDERAL Law.
    Federal Law needs to change that Refund stuff.
    I’ve heard that the amount refunded is more than a million dollars that JUST EL PASO would have kept.

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  2. Old Fart says:

    This was a good point ‘Oracle’: “Even though, while the foreigners are here. . . they use the parks, the mass transit, emergency services, hospital, wear out the roads, consume the water, and then . . . they want the Sales Taxes BACK, as per FEDERAL Law.”

    Does Mexico provide this same type refund benefit to US citizens who shop in Juarez? If so, It would certainly be interesting to see if any refunds balance out between our two communities?

    Great discussion point Brutus, so thanks.

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    • Tickedofftaxpayer says:

      Yes. Mexico does but it is a really complex process that most folks don’t do unless they work at a maquiladora with an accounting department that knows how to do it. We make it extremely easy, allowing Mexicans to process refunds at malls. We should mirror Mexico’s system.

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      • The Oracle says:

        We are also talking about a country that is on the “Do Not Travel” list at the State Department every other few months.
        So, it’s dangerous for US to even GO over to Mexico and have been told to “Stay Out” of Mexico by the State Department, so it’s a one way street for Sales Taxes.
        (We can’t even go there . . . Safely.)

        So, it wouldn’t matter if Mexico was giving out 100% of Their Sales Tax back at the border in cash and throwing it at cars as they leave. . . . . . We can’t GO THERE.
        Mexico is off limits for military also.

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